British Columbia Premier Christy Clark fields questions about a national energy strategy at the annual Council of the Federation meeting in Halifax on Friday, July 27, 2012. THE CANADIAN PRESS/Andrew Vaughan

British Columbia Premier Christy Clark talks with reporters before the start of the morning session at the annual Council of the Federation meeting in Halifax on Thursday, July 26, 2012.Andrew Vaughan
/ THE CANADIAN PRESS

Alberta Premier Alison Redford, Prince Edward Island Premier Robert Ghiz and British Columbia Premier Christy Clark listen to a choir at Province House during the annual Council of the Federation meeting in Halifax on Thursday.Andrew Vaughan, CP
/ Postmedia News

British Columbia Premier Christy Clark, Saskatchewan Premier Brad Wall and Newfoundland and Labrador Premier Kathy Dunderdale, left to right, wait for the start of the morning session at the annual Council of the Federation meeting in Halifax on Thursday, July 26, 2012. THE CANADIAN PRESS/Andrew Vaughan

Related

HALIFAX — B.C. Premier Christy Clark says her government will not sign onto any national energy strategy until British Columbia’s dispute with Alberta and the federal government over the Northern Gateway oil pipeline is resolved.

Clark’s announcement Friday during the final day of the annual Council of the Federation conference torpedoed any hopes of Canada’s 13 premiers agreeing to a new Canadian energy strategy that’s being trumpeted by Alberta’s Alison Redford, who has been sparring with Clark all week over the Enbridge oilsands pipeline.

Clark said her Liberal government’s five economic and environmental conditions for considering the Northern Gateway pipeline — including securing a “fair share” of the economic benefits — must be met if B.C. is to sign onto a pan-Canadian energy strategy.

“I certainly see value in having a national energy strategy. It actually has to have some meaning, though, for it to work. And at the moment, it’s not a national energy strategy if B.C. hasn’t signed on,” Clark added.

“Until we see some progress in the discussions between British Columbia, Alberta and the federal government with respect to the Gateway pipeline through British Columbia, we will not be participating in a discussion of a national energy strategy,” Clark told reporters after stepping out of the meeting with her colleagues. “Alberta has to be willing to sit at the table with British Columbia and talk about how we’re going to share the benefits of this project for our province.”

The B.C. government said earlier this week it won’t support the $6-billion Enbridge Northern Gateway pipeline — which would carry oilsands crude, or bitumen, from northern Alberta to Kitimat, for shipment to Asia — until five environmental and fiscal conditions are met, including B.C. getting a much larger share of economic benefits such as resource royalties or other tax revenue.

Redford said she’s willing to discuss the matter with Clark, but that Alberta’s royalties are off the table. B.C.’s proposal for a share of Alberta’s royalties and tax revenue sets a dangerous precedent that would effectively rewrite the rules of Confederation, she maintains.

Nova Scotia Premier Darrell Dexter, host of the meeting and current chairman of the group, characterized the dispute between B.C. and Alberta as a divergence rather than division.

With no resolution in sight, the remaining 12 provinces and territories will forge ahead on their own in creating a new strategy for energy development in Canada.

“As provinces, we will often have issues that we need to be resolved, and I think there was a real sense around the table that while those issues are there, that it’s still possible to have the policy conversation,” Redford told reporters at a closing news conference. “In some ways, the issues we’re dealing with this week are an illustration as to why we need to have a Canadian energy strategy.”

The federal government plans to continue to support the development of energy resources and back a national energy initiative, but will respect provincial jurisdictions.

“When you look at provincial jurisdictions, provinces decide how they manage natural resources, how they choose to develop [them],” Michelle Rempel, the MP for Calgary South and Parliamentary Secretary for the Minister of Environment said.

“We see our role as being respective of jurisdictions.”

Clark’s decision not to sign onto Friday’s development was perfectly understandable, according to the Business Council of B.C.

The guiding principles of a new energy strategy will promote effective and efficient regulatory systems, affirm the need for intergovernmental cooperation, and commit to lower-carbon alternatives and conservation to meet future energy needs.

“I think it would be premature to sign on if we’re in the middle of a major energy dispute with Alberta,” said Jock Finlayson, business council executive vice-president and chief policy officer.

The rest of the premiers announced Friday they will work with provincial energy ministers to update a 2007 energy framework, as well as assess new challenges facing the sector, ensure the country has a plan for sustainable energy development that recognizes regional strengths and jurisdictional rights, and develop a more integrated approach to climate change.

Finlayson said views vary on the potential benefits of a national energy strategy for B.C. with some saying it’s a great idea for a “common vision,” and others more skeptical.

“We’re broadly supportive of developing Canadian energy [strategies] at a high level, [but] I’m personally skeptical that a meaningful agreement is achievable across the full spectrum of provinces.

“I think B.C. has a perfect right to say those risks are borne by B.C., so it should mean economic benefits for the province.”

Werner Antweiler, an economics professor with the Sauder School of Business, University of B.C., said the national energy strategy is still quite vague — “something essentially coming out of Alberta” — and it’s far from clear what it includes.

While he said it’s not a good idea to slam the door on dialogue, Antweiler said the national energy strategy winner is “clearly the oil- and gas-producing provinces, primarily Alberta. There’s nothing proposed that would identify a substantial benefit to B.C.”

However, Philip Hochstein, president of the Independent Contractors and Business Association of B.C., said Clark’s decision to withdraw from the national energy strategy discussions was premature, though he supported her push for better benefits from the Northern Gateway proposal.

“You can’t have a national energy plan if a major participant doesn’t have its issues dealt with,” Hochstein said.

From the environmental side of energy policy, one observer also expressed disappointment that Clark withdrew from the discussions in Halifax, which is viewed as a step in the right direction to address climate change.

Merran Smith, director of clean energy at the group Tides Canada, said B.C. has been a leader on climate change with its carbon tax, goals to reduce greenhouse-gas emissions and support of renewable energy.

“Of course we really respect that there are huge risks to putting bitumen pipelines through British Columbia, so we think it’s good [Clark] is speaking up on those issues,” Smith said.

“That said, we actually need to talk about a much bigger issue in Canada as well, and that is the transition to a clean and renewable energy economy. Globally, that has started, and Canada is lagging behind.”

Meanwhile, a public hearing on the Enbridge proposal has been cancelled in Calgary because fewer than 15 people registered to make statements. Earlier this month, a public hearing in Edmonton was cancelled for the same reason.

More than 4,000 people in B.C. have registered to comment on the project.

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.